Gold Maintains $1,600 as Cyprus Waits on Bailout

On Friday, gold (NYSEARCA:GLD) futures for April delivery, the most active contract, decreased $7.70 to close at $1,606.10 per ounce, while silver (NYSEARCA:SLV) futures for May fell 51 cents to finish at $28.70.

Gold closed higher for the third consecutive week, as the Cyprus bailout debacle continues. The country is still trying to approve a plan that will allow it to sustain a banking system, keep using the euro currency, and calm fears about a total meltdown.

Depositors with less than 100,000 euros were initially facing a confiscation tax of 6.75 percent. New plans are trying to protect these savers by taxing only those with over 100,000 euros, but nothing has been approved yet. Furthermore, capital controls are set to take place as confidence is already shattered in the country’s banking system.

By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) dipped 0.45 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell 1.53 percent. However, gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) edged slightly higher. Silver Wheaton (NYSE:SLW) also gained nearly 1 percent after reporting a 23 percent jump in profits for the fourth quarter.